oil rises but growing us output threatens rally
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

Oil rises, but growing US output threatens rally

Egypt Today, egypt today

Egypt Today, egypt today Oil rises, but growing US output threatens rally

Investors have certainly taken OPEC members
London - Arab Today

Oil edged up on Monday, as investor optimism over the effectiveness of producer cuts encouraged record bets on a sustained price rise, although growing US output and stubbornly high stockpiles kept price gains in check.
Brent futures were up 28 cents at $56.09 a barrel at 1448 GMT, while US West Texas Intermediate crude was up 23 cents at $53.63.
Investors have certainly taken the Organization of the Petroleum Exporting Countries (OPEC) members at their word on their commitment to cut production and now hold more crude futures and options than at any time on record.
But evidence of rising output in the US has tempered money managers’ appetite to push prices higher. Since the start of the month oil prices have gained around $2.
“There is still a general consensus that the OPEC/non-OPEC agreement helps supply to get in line with demand. This bullish stance is countered by the ever-increasing inventories in the US and rising rig counts,” PVM Oil Associates strategist Tamas Varga said in a note.
OPEC and other producers, including Russia, agreed last year to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017.
Estimates indicate compliance with the cuts is around 90 percent, while Reuters reported last week that OPEC could extend the pact or apply deeper cuts from July if global crude inventories fail to drop enough.
Saudi Arabia’s crude oil shipments fell in December to 8.014 million bpd from 8.258 million bpd in November, official data showed on Monday.
“Sustained gains above $55 a barrel and a hoped-for rally to $60 a barrel, (are) both proving incredibly tough nuts to crack,” said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.
“At the crux of the matter is that 90 percent OPEC compliance is being balanced by ever-increasing US shale production,” he added.
US energy companies added oil rigs for a fifth consecutive week, Baker Hughes said on Friday, extending a nine-month recovery with producers encouraged by higher prices, which have largely traded above $50 a barrel since late November.
“Assuming the US oil rig count stays at the current level, we estimate US oil production would increase by 405,000 (barrels per day, or bpd) between fourth quarter 2017 and fourth quarter 2016 across the Permian, Eagle Ford, Bakken and Niobrara shale plays,” Goldman Sachs said in a research note.
The US market will be closed on Monday for the Presidents Day holiday.

Source: Arab News

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil rises but growing us output threatens rally oil rises but growing us output threatens rally



GMT 07:30 2015 Thursday ,09 April

India court convicts ex-Satyam chief

GMT 02:19 2012 Sunday ,22 January

Dior VIII Wristwatch

GMT 12:03 2013 Saturday ,21 September

Rock Beauty unveils new Nail Rockits

GMT 11:08 2017 Friday ,24 November

President Sisi had busy schedule last week 5 Cairo

GMT 12:42 2012 Wednesday ,29 August

Jessica Alba dons lighter hair

GMT 12:33 2017 Monday ,29 May

Iraqi Writers Union nominates

GMT 10:24 2012 Friday ,13 April

High-pressure preschools: how much is too much

GMT 15:37 2017 Friday ,03 February

Advertisers eye winning Super Bowl strategy

GMT 11:20 2017 Wednesday ,15 February

Reunions abound as Man Utd tackle Saint-Etienne

GMT 07:12 2018 Sunday ,02 December

Putin accuses Ukraine of not wanting peace

GMT 19:59 2011 Thursday ,25 August

The Man Who Ate His Boots

GMT 05:15 2014 Saturday ,16 August

Georgian prosecutor puts ex-president on wanted list

GMT 10:49 2015 Tuesday ,07 July

Who is behind the attacks in Egypt?

GMT 14:12 2016 Wednesday ,11 May

Legal culling of wolves increases poaching

GMT 13:02 2015 Thursday ,22 October

Halloween asteroid to shave past Earth

GMT 10:28 2012 Saturday ,03 March

Black and Asian dancers perform new works

GMT 11:20 2013 Tuesday ,05 March

Zara boss tops fashion rich list
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday